Irish Life & Permanent is a tempting investment

Irish Life and Irish Permanent have enjoyed strong interest since the merger was announced in December and the value of the merged…

Irish Life and Irish Permanent have enjoyed strong interest since the merger was announced in December and the value of the merged group has risen by more than £500 million (€634 million), with a notional market capitalisation this week of £3.3 billion.

While most of the attention on the financials has focused on the huge demand for AIB shares from index funds, and speculation AIB might become a takeover target from one of the European banking giants, the merged Irish Life & Permanent's exposure to the domestic economy makes it a tempting investment for any investor who has bought the Celtic Tiger argument.

David Went and his chums are now off on a roadshow around Europe selling Irish Life & Permanent's attractions to the continental institutional investors. London was the focus for the roadshow last week. Roadshows like this have a tendency to push a company's shares ahead, so don't be too surprised if Irish Life and Irish Permanent get a lift in the weeks ahead.